A tropical climate, beautiful beaches, and even freedom (as of late) are several reasons many Americans have been drawn to The Sunshine State. However, various cost of living parameters have also been quite an attraction to Americans opting to move south. Recently, MoneyGeek performed an analysis ranking every state by how “tax-friendly” it is. The analysts didn’t just look at income tax – they also factored in property taxes, plus state and local sales taxes. In order to level set this analysis, MoneyGeek used data that would reflect a hypothetical family. This included: a married couple with one kid, earning the median national income of $82,852, owning a $349,400 home.
States with the lowest tax burden
- 1. Wyoming (estimated taxes: 4% of income or $3,279)
- 2. Nevada (estimated taxes: 4.7% of income or $3,879)
- 3. Alaska (estimated taxes: 5.4% of income or $4,507)
- 4. Florida (estimated taxes: 5.6% of income or $4,632)
- 5. Tennessee (estimated taxes: 6.5% of income or $5,377)
- 6. Washington (estimated taxes: 6.5% of income or $5,414)
- 7. North Dakota (estimated taxes: 6.7% of income or $5,556)
- 8. Arizona (estimated taxes: 6.8% of income or $5,665)
- 9. South Dakota (estimated taxes: 7.2% of income or $5,938)
- 10. Delaware (estimated taxes: 7.3% of income or $6,074)
States with the highest tax burden
- 1. Illinois (estimated taxes: 16.8% of income or $13,894)
- 2. Connecticut (estimated taxes: 15.1% of income or $12,545)
- 3. New Jersey (estimated taxes: 14.3% of income or $11,872)
- 4. New Hampshire (estimated taxes: 14.1% of income or $11,694)
- 5. New York (estimated taxes: 13.9% of income or $11,495)
- 6. Iowa (estimated taxes: 13.8% of income or $11,398)
- 7. Wisconsin (estimated taxes: 13.2% of income or $10,976)
- 8. Vermont (estimated taxes: 12.6% of income or $10,453)
- 9. Nebraska (estimated taxes: 12.6% of income or $10,446)
- 10. Michigan (estimated taxes: 12.4% of income or $10,239)
Summary
Based on recent migration trends, the State of Florida does not need to add any more reasons to consider a move to paradise. However, the tax-friendliness of the state combined with the popularity of remote working environments has essentially opened up the floodgates for Americans moving to Florida. With there being no end in sight for these migration trends, this may be a good time to also consider adding investment properties to your South Florida real estate portfolio. We can help! Contact Live South Florida Realty, Inc. today!
At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!
